On May 4, 2022, the Consumer Financial Protection Bureau published a consent order concerning Bank of America’s garnishment practices whereby Bank of America agreed to:
- Refund at least $592,000 to its customers for garnishment fees that were improperly assessed;
- Pay a civil penalty of $10 million; and
- Submit a compliance plan for redressing unfair and deceptive acts in its garnishment processing.
The order has significant implications for the banking industry and the processing of garnishments. Accordingly, it would be prudent for all banks to undertake an immediate review of the following.
To read the full text of this Duane Morris Alert, please visit the firm website.
